Common use of Financial Compensation and Indemnification Clause in Contracts

Financial Compensation and Indemnification. 7.10.1 In case Party A early dissolves this Contract, and needs to pay financial compensation to Party B as required by the State, Party A shall pay the financial compensation in full to Party B according to the standards stipulated by the State. 7.10.2 Where Party B has incurred losses as a result of Party A’s dissolution of this Contract in violation of the provisions herein, Party A shall bear the indemnification liabilities pursuant to the provisions of the State and the local government. 7.10.3 Party B shall bear the following indemnification liabilities if it early dissolves this Contract in violation of the provisions or the employment contract: (a) the expenses paid by Party A for the recruitment and employment of Party B; (b) the training costs paid by Party A for Party B; in case the Parties have other agreement, such agreement shall be applied; (c) direct economic losses caused to production, operation and business; and (d) Party A’s economic losses due to Party B’s divulgence of the company’s technology or trade secrets.